Howard Marks Calls China Market a ‘Buy’ in Oaktree WeChat Debut

(Bloomberg) -- Oaktree Capital Management's co-founder vowed to participate in China's market in the long run by “always buying,” as the distressed-debt investor launched a WeChat social media account. 

“Losing sight of those long-term prospects because of the desire to avoid short-term volatility can result in investors missing out on great opportunities,” Howard Marks said in an interview posted to the platform. “Your entry price matters, and today's climate should lead to many attractive entry points.”

Oaktree, with offices in Shanghai and Beijing, has made more than 30 billion yuan ($4.7 billion) of investments in China, according to the post. “Stimulating its economy while staying true to the ‘common prosperity,' and deleveraging its financial system will be China's greatest challenge,” Marks said. 

Read more on Oaktree's deals with troubled Chinese developers

Marks said late last year that the Los Angeles-based firm was actively working on deals to finance China's struggling real estate companies, even as contagion from China Evergrande Group kept other financiers away. The firm seized a plot of land owned by Evergrande in Hong Kong, the Financial Times reported in late January. 

While the property sector's woes and the Covid-19 pandemic are dragging on the economy, Marks expressed optimism in the WeChat interview. 

“If China was a person, it would be someone in their youth,” he said. “While the young experience ups and downs, the future is bright.” 

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